SKF India (500472) Q1 24/25 earnings summary

Executive summary

• Net sales for Q1 FY 2024-25 were INR 11.8 billion, with 50% from industrial, 41% from automotive, and 8-9% from exports.

• Growth was driven by heavy industries, metals, two-wheelers, cars, and tractors.

• Manufacturing mix improved to 64% in Q1, up from 58% in the previous quarter.

• Unaudited standalone and consolidated financial results for the quarter ended June 30, 2024, were approved by the Board and reviewed by statutory auditors with an unmodified opinion.

• Financial statements were prepared in accordance with Ind AS and SEBI LODR requirements.

Financial highlights

• Consolidated revenue from operations for Q1 FY25 was ₹12,062.2 million, up from ₹11,496.0 million in Q1 FY24.

• Consolidated profit for the period was ₹1,589.3 million, compared to ₹1,544.2 million in Q1 FY24.

• Standalone profit for the period was ₹1,590.4 million, up from ₹1,545.3 million in Q1 FY24.

• Manufacturing mix increased to 64% in Q1 FY 2024-25, with traded products at 36%.

• Capacity utilization reached 84% in FY 2024, with 16 crore bearings produced and 6% overall growth.

Outlook and guidance

• Wind business expected to resume growth after customer pruning actions completed in Q2.

• Railways business anticipated to grow as government projects expand post-elections.

• No formal guidance provided, but focus remains on profitable growth and margin improvement.

• Management expects growth to pick up in coming quarters as headwinds subside.